Cost of Service Rate Application
Local distribution companies (LDCs) such as Orangeville Hydro, are funded by the distribution rates included in the delivery charge paid by their customers. Electricity distributors are required to file a rate application with the electricity regulator, the Ontario Energy Board (OEB), to request a change in distribution rates. This is called a Cost of Service (COS) application.
A COS is essentially a detailed business plan and budget, laying out the strategic vision for the next 5 years. The COS determines the level of spending and investments that Orangeville Hydro will make, including equipment, infrastructure, maintenance, service offerings, rates customers pay and more. All costs must be presented and justified by the LDC before being reviewed by the OEB. Orangeville Hydro last completed a COS application for 2014 rates.
Key components of the COS application include:
- A detailed operating budget including comparisons and a history from the last COS application.
- A detailed capital plan including comparisons and a history from the last COS application.
- A Distribution System Plan that lays out the strategic vision for the system over the next five years.
- An Asset Management Plan that lays out how we will ensure the system is being maintained efficiently.
- A discussion on how we keep engaged with our customers as well as the result of the customer satisfaction surveys taken every two years.
- Our capital structure (debt and equity).
- The resulting calculation of rates and what the impact will be on customers.
Staff at Orangeville Hydro are busy compiling information for the application to be submitted to the OEB for May 1, 2024 rates. As the process continues, updates will be posted on our website. If you have any comments on this process, please email [email protected].
Cost-of-Service Rate Application – Case Number EB-2023-0045
Orangeville Hydro Limited has applied to the Ontario Energy Board to increase its electricity distribution rates effective May 1, 2024.
- To view the full application, including all models and evidence, please visit – Ontario Energy Board (OEB) website.
- Previous Cost of Service Application – EB-2013-0160 – OEB website
Historical Rate Orders
Orangeville Hydro submits an annual rate application to the Ontario Energy Board requesting approval of our Distribution Rates for our customers. Below are historical approved Tariff and Rates and Charges.
Distribution System Plan
A Distribution System Plan (DSP) is a document that all Local Distribution Companies (utilities) submit to the Ontario Energy Board. The document outlines how the utility plans to maintain, improve, connect, and grow their distribution system. All the while explaining and considering value to stakeholders, current and future investments, capital expenditure and conservation.
It is important to note that this Distribution System Plan solely focuses on Orangeville Hydro’s plans and goals for the next 5 years relating to investments that have already been set aside. Therefore, this DSP does not immediately impact hydro rates. This DSP was included in the rate application for May 1, 2022 rates.